KSCU faces $100K loss with ‘banking’ terminology change

The head of the Kootenay Savings Credit Union is calling changes to banking terms ridiculous and completely unnecessary.

KSCU President Brent Tremblay is reacting after the Officer of the Superintendent of Financial Institutions forbid credit unions from using terms related to banking.

He says the move will only create confusion for customers and ultimately cost credit unions a small fortune.

“As near as we can to estimate it, its upwards of $100,000 and in the multi-millions for the credit union system across Canada,” Tremblay says. “That cost would come at the expense of our investment in communities, our ability to share profits with members and our ability to pay staff salaries, for example.”

Tremblay is calling on Federal Finance Minister Bill Morneau to step in, before the change affects their patrons.

“We believe its some bureaucrats interpretation of wording in the Canadian Bank Act that was actually established in 1871 before credit unions even existed in Canada,” Tremblay says. “Really, it flies in the face of all common sense and its only going to cause confusion for all financial services consumers.”

Kootenay-Columbia MP Wayne Stetski is also crying foul over the issue.

He says credit unions shouldn’t be blocked from using a simple term due to an 80 year old law.